Robust pickup in FDI inflow into central Vietnam's Quang Nam province

Quang Nam province in central Vietnam licensed seven foreign direct investment (FDI) projects with total registered capital of $124.2 million in Jan-May, up 100% year-on-year.

During this period, the province also approved additional capital to seven existing projects, terminated operations of five others and gave the green light to seven capital contributions and share purchases by foreign investors.

It granted licenses to 14 new domestic projects with a combined registered capital of more than VND4.2 trillion ($165 million).

Quang Nam is now home to 1,148 domestic investment projects with total capital of nearly VND230 trillion ($9.04 billion) and 199 FDI projects worth more than $6.2 billion.

At a conference announcing the provincial master plan for 2021-2030 with vision until 2050 held March 16, 2024, the province granted in-principle approval, awarded investment registration certificates and investment location research agreements to investors of 16 projects totally worth over VND20 trillion ($785.73 million), including several large-scale FDI projects.

These included a VND500 billion ($19.64 million) cleaning equipment factory invested by Germany’s Karcher Beteiligungs - GMBH Company and a VND820 billion ($32.21 million) super white floral glass factory by China’s Uc Thinh Vietnam Glass Science Development Company Limited.

South Korea’s Star Group Industrial Co., Ltd will invest VND1.92 trillion ($75.43 million) in a magnetic magnet project, while by China’s Guoguang Electric Co., Ltd will invest VND960 billion ($37.71 million) in an audio equipment manufacturing project.

“These are important projects that concretize the newly approved provincial master plan,” said the province's Party chief Luong Nguyen Minh Triet.

They are good signs for Quang Nam to invite more domestic and foreign investors to join local efforts to realize the plan’s targets, he added.

Quality over quantity

Ho Quang Buu, acting Chairman of the provincial People's Committee, said that in the coming time, the province will focus on quality other than quantity in attracting FDI.

Particular focus will be given to advanced technology and use of domestic resources, he added.

Buu noted the province will clearly reject projects using outdated technology that can worsen environmental pollution as well as those that affect national defense and security.

"Currently, the provincial People's Committee has directed relevant agencies to implement many solutions to remove difficulties and obstacles for businesses and create conditions for their production and business activities, as well as improve the investment environment," Buu said.

To attract FDI capital, the province will regularly exchange information with domestic and international investment promotion organizations, investment and trade counselors in other countries as well as investment consulting and brokerage companies to enlist their help and support in promoting the potential, investment environment and opportunities in the province.

Quang Nam will introduce direct investment cooperation opportunities for partners from countries with high technology and source technology as well as leaders in supply chains and members of multilateral FTA agreements that Vietnam is signatory to, including the U.S., EU, Japan, South Korea, and Singapore.

Buu also said the province will strive to improve the quality of its investment promotion work and direct its local administrations to accelerate site clearance and compensation in order to present “clean space” and attract foreign investors.